رهيافت پولي نسبت به نرخ ارز: مطالعه موردي كشورهاي منطقه MENA

The Monetary Approach to Exchange Rate: Case Study in MENA Countries

The monetary approach happens to be one of the oldest approaches to determine the exchange rate changes. This paper investigates the monetary variables effects on nominal exchange rate in Middle East and North African Countries (MENA). For this purpose, panel data econometrics technique has applied during 19752005 period. The empirical results indicate that the monetary model is able to convincingly explain the exchange rates behavior in MENA Countries. In fact, empirical evidence implies that there is a significant relationship between nominal exchange rate and monetary variables such as liquidity differential, output differential, real interest rate differential in Middle East and North African countries. Hence, by decreasing the real interest rate and liquidity growth and increasing economic growth, the policy makers can improve the exchange rates in these countries, particularly in Iran.